Grow your business with SMART SOURCING was the topic of the Speech given at the Online Retailers Expo by Daphne Lee, International Business Development & Management at Alibaba.

1. Alibaba.com @ Online Retailer Expo
Grow your business with
SMART SOURCING
Daphne Lee
International Business Development & Marketing
Alibaba.com September 27, 2011

2. Alibaba Group Overview
• Founded in 1999 by Jack Ma, CEO of Alibaba Group
• Alibaba group now has 20,000+ employees and 60 offices in China,
Hong Kong, Taiwan, Korea, USA, UK and India.
1999 2011
Jack’s apartment View from the sky bridge at Alibaba.com corporate
Hangzhou, China campus in Hangzhou, China

3. Alibaba Group Overview
A decade later, Alibaba Group has become the largest e-commerce
company in China and a family of Internet-based businesses
(HK
Alibaba.com Limited
stock code: 1688)
One of China's
China's largest China's leading leading
C2C and B2C third-party Internet portals
retail website. online payment
In year 2010, platform, 550
Taobao has 370 million users.
million users, 4.7 Up to 5.5 M
million sellers. transactions
2010 GMV near amounting to
400 billion over RMB 1.4
World Largest B2B marketplaces RMB. (app. 60 billion daily.
billion USD)
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4. Alibaba.com - B2B Marketplaces
Alibaba.com is a flagship company of Alibaba Group
• The world’s largest online B2B marketplace
• Search and compare with over 9.2 million storefronts worldwide
• Easier than searching Google – targeted niche search engine
• Free membership
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5. Alibaba.com B2B eCommerce |
International Marketplace
Key features on product listing page:
1. Search Engine
• Keyword Search
• Product Category
2. Supplier/Product Information
• Company Products
• Company Profile
• Company Video
3. Value-Added Services (VAS)
• Keyword Search
• Premium Placement
• Virtual Showroom
4. Real-time Communication &
Inquiry
• Trade Manager
• Email

6. Australia member base
• Australia is one of the largest • AU membership base seen
markets for Alibaba.com, steady growth over past 4 years
accounting for 3% of total
21.6M international registered Reg. Members YoY
users Dec. 2006 60,700
Dec. 2007 113,700 87%
Dec. 2008 183,900 62%
Dec. 2009 272,700 48%
Dec. 2010 498,000 82%
Jun. 2011 627,676 79%
• Vast majority of registered
members are buyers. 97% have
potential buying demand.

7. To Grow Your Business with
Smart Sourcing
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8. Tips for Smart Online Sourcing
 Research Effectively
 Verify Suppliers
 Safe Payment
 Quality Control
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9. RESEARCH:
Alibaba.com Platform:
 Largest platform of suppliers
 Plethora of products to choose from
 Greater convenience in sourcing
Q: What is the best way to shortlist your
suppliers efficiently and effectively?
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10. Alibaba.com Search & Filter
Search: Product, Country or Category
– Try added specifications and using ―quotation marks‖
Refine: Categories, Materials, Supplier location, etc.
– Filters ADJUST to your search item
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11. Alibaba.com Search Results
Products: Suppliers: Tools:
-Image -Name & Type -Gold Supplier
-Description -Location -Trade Manager
-Min. Order -Supplier Profile -Contact Supplier
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12. Other Buying Tools
(1) Submit RFQ for
customized matching
service from Alibaba.com
(2) Post a Buying Lead to let
the right suppliers find you
(3) Subscribe to Trade Alerts
to get updates on the latest
products
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13. VERIFY Suppliers
 Verify supplier quality:
Best price is not the only thing to consider!
 Basic verification steps:
―Due diligence online
――About Us‖ section, E-mail, Phone, Zip Code
―Check company capability through online profile,
e.g. certificate, ODM/OEM experience
―Beware of companies with incomplete details or who
use only mobile phone to contact you
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14. Alibaba.com Verification Tools
Gold Suppliers: Paying members
A&V and Onsite Check : Verify basic supplier details, new
Gold Suppliers must be checked by Alibaba.com
Factory Audit: Certified by third party partner
To Refine
Online Tools
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15. Factory Audit Reports
Third party audits supplier to verify information and take
pictures onsite
Buyers can use reports to assess supplier credentials and
capabilities
Request Report
Find reports from the supplier’s TrustPass profile page
Click ―View the Report Summary‖ to request a copy of the
report for free
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16. Other Verification Tips
Keep initial contact simple:
—Get message across with as little information as
possible
―Don’t ask for RFQ in during first contact in China
Additional methods of verification:
―Local Embassy & Chamber of Commerce
―Foreign trade forums - Alibaba.com Safe Trading
Forums
―Bank verification
―Credit report
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17. PAYMENT Security & Safety
Popular Payment Methods:
Telegraphic Transfer: Buyers/seller with a trustworthy
relationship. Risk 100% with buyer.
Letter of Credit: Buyer’s bank guarantees they’ll pay for
goods, provided supplier agrees to set of clauses.
Document against Payment : Exporter ships goods and gives
document to bank to forward to buyer’s bank.
Open Account: Exporter receives payment after buyer has
received and inspected goods. Risk is 100% with seller.
Escrow: Legal arrangement where money is paid to a third
party and held in trust until goods are delivered.
EVENLY shared risk
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18. Payment Safety & Security
Alibaba.com Escrow: Buyer pays Alibaba.com Escrow,
where money is held until buyer receives goods and
releases payment to supplier
Key features:
 Secure payment online
 Dispute resolution service from Alibaba.com
 Information protection by VeriSign
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19. Using Alibaba.com Escrow
To Refine
 Sort by suppliers
offering Escrow
 Order with Escrow
To Order
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20. Quality Control
Take measures to avoid sub-standard products: Quality control
checks help provide a smooth supply process and reduces the number
of customer complaints
 Travel to potential trade partner’s place of business: Inspect the
factory, production, products, etc.
 Hire Inspection Services: Efficient way to do quality control for the
during production and shipment process
― Alibaba.com Inspection Service: New platform for inspection
service providers and buyers
 Initial Production: 10% of goods produced
 During Production: 25-40% of goods produced
 Final Random Check: 80% packed ready for dispatch
 Container Loading: Goods being loaded for shipping
 Other Services: Specified by inspectors
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21. Alibaba.com Inspection Platform
Benefits to buyers:
Reliable pre-validated inspectors
Wide range of inspectors
Ease and convenience
Secure payment
Guaranteed quality
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22. Using Inspection Platform
To use: Select location of inspector and industry for product
Results: Company details, Price, Inspection Type, Serviced
Location and Languages provided
Online tools: Trade Manager, Contact Inspector
To Use
Online Tools
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23. Other QC Measures
Selection process
 ISO Accreditation: Indicator of commitment to quality
 Request a sample: Assures quality before you commit to
the deal 100 percent
―Be sure standard of quality is clearly stated in your
purchase contract
Shipment process:
 Freight Forwarder: Helps get transport information
(shipping rates/routes), books cargo space, and prepares
importing documents.
—AU Gov. Website: Resource, www.austrade.gov.au/Finding-
freight-forwarder/default.aspx
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24. SUCCESSFUL STORIES
IN AUSTRALIA
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25. AU Big Buyers on Alibaba.com
Australia
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26. Australia Buyers on Alibaba.com
Founded in 2004 Dealsdirect.com.au makes shopping
easy for the millions of people living in Australia
Dedicated team of buyers, majority of sourcing done
on Alibaba.com
Roughly 30-80% less than recommended retail prices
on all of our products
Wide range of product choices
Guaranteed low prices
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27. Buyer Testimonial: Andrew Morello
“The major benefit of Alibaba.com is
its simplicity. There are a lot of
supplier websites out there now, but
none as detailed or as simple to use
as Alibaba.com.”
Andrew Morello, Winner of The
Apprentice 2009 (Australia)
“If there’s something you
need, go to Alibaba.com
and source the best
possible products at the
best possible price.”
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28. Welcome to visit Au.alibaba.com
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29. Alibaba.com Australia Fans Page
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30. Thank You &
Join us free today !